A. FincalInc. manufactures financial calculators.The company is deciding whether to introduce a new calculator.This calculator will sell for $120.The company feels that sales will be 13,000, 13,000, 14,000, 14,000, 15,000and 12,500 units per year for the next 6 years.Variable costs will be 30% of sales, and fixed costs are $200,000 per year.The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $2,000,000.The company plans to use a vacant warehouse to manufacture and store the calculators.Based on a recent appraisal the warehouse and the property is worth $3 million on an after-tax basis. If the company does not sell the property today then it will sell the property 6 years from today at the currently appraised value.This project will require an injection of net working capital at the onset of the project in the amount of $500,000.This networking capital will be fully recovered at the end of the project.The firm will need to purchase some equipment in the amount of $2,400,000 to produce the new calculators.The machine has a 6-year life and will be depreciated using the straight-line method.At the end of the project, the anticipated market value of the machine is $100,000.The firm requires an 8% return on its investment and has a tax rate of 21%.

Calculate the operating cash flows at the end of year 1.(Round to two decimals)

B. FincalInc. manufactures financial calculators.The company is deciding whether to introduce a new calculator.This calculator will sell for $120.The company feels that sales will be 13,000, 13,000, 14,000, 14,000, 15,000and 12,500 units per year for the next 6 years.Variable costs will be 30% of sales, and fixed costs are $200,000 per year.The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $2,000,000.The company plans to use a vacant warehouse to manufacture and store the calculators.Based on a recent appraisal the warehouse and the property is worth $3 million on an after-tax basis. If the company does not sell the property today then it will sell the property 6 years from today at the currently appraised value.This project will require an injection of net working capital at the onset of the project in the amount of $500,000.This networking capital will be fully recovered at the end of the project.The firm will need to purchase some equipment in the amount of $2,400,000 to produce the new calculators.The machine has a 6-year life and will be depreciated using the straight-line method.At the end of the project, the anticipated market value of the machine is $100,000.The firm requires an 8% return on its investment and has a tax rate of 21%.

Calculate the initial cash outflow (e.g. the time 0 cash flow).(Enter a negative value and round to two decimals)

C. FincalInc. manufactures financial calculators.The company is deciding whether to introduce a new calculator.This calculator will sell for $120.The company feels that sales will be 13,000, 13,000, 14,000, 14,000, 15,000and 12,500 units per year for the next 6 years.Variable costs will be 30% of sales, and fixed costs are $200,000 per year.The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $2,000,000.The company plans to use a vacant warehouse to manufacture and store the calculators.Based on a recent appraisal the warehouse and the property is worth $3 million on an after-tax basis. If the company does not sell the property today then it will sell the property 6 years from today at the currently appraised value.This project will require an injection of net working capital at the onset of the project in the amount of $500,000.This networking capital will be fully recovered at the end of the project.The firm will need to purchase some equipment in the amount of $2,400,000 to produce the new calculators.The machine has a 6-year life and will be depreciated using the straight-line method.At the end of the project, the anticipated market value of the machine is $100,000.The firm requires an 8% return on its investment and has a tax rate of 21%.

Calculate the cash flow from assets at the end of year 6.(Round to two decimals)

D. FincalInc. manufactures financial calculators.The company is deciding whether to introduce a new calculator.This calculator will sell for $120.The company feels that sales will be 13,000, 13,000, 14,000, 14,000, 15,000and 12,500 units per year for the next 6 years.Variable costs will be 30% of sales, and fixed costs are $200,000 per year.The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $2,000,000.The company plans to use a vacant warehouse to manufacture and store the calculators.Based on a recent appraisal the warehouse and the property is worth $3 million on an after-tax basis. If the company does not sell the property today then it will sell the property 6 years from today at the currently appraised value.This project will require an injection of net working capital at the onset of the project in the amount of $500,000.This networking capital will be fully recovered at the end of the project.The firm will need to purchase some equipment in the amount of $2,400,000 to produce the new calculators.The machine has a 6-year life and will be depreciated using the straight-line method.At the end of the project, the anticipated market value of the machine is $100,000.The firm requires an 8% return on its investment and has a tax rate of 21%.

Calculate the net present value for the project. (Round to 2 decimals)